Americans Renouncing Citizenship at Record Levels to Protect Wealth

Fox News Latino ^ | June 2012

[SeekAndFind]

America's rich are renouncing their citizenship at record levels -- just to get richer.

Startling new data from Uncle Sam show that defections by Americans are expected to double this year, largely to avoid any stiff tax bills resulting from the proposed 55 percent hike on the rich, as well as the likely Dec. 31 expiration of the Bush-era tax cuts.

As many as 8,000 US citizens are projected by immigration officials to renounce in 2012, or about 154 a week, versus 3,805 in 2011, or about 73 per week.

"High-net-worth individuals are making decisions that having a US passport just isn't worth the cost anymore," according to Jim Duggan, a lawyer at Duggan Bertsch, which specializes in protecting assets of the wealthy. "They're able to do what they do from any place in the world, and they're choosing to do it from places with much lower tax rates."

Duggan added, "Some are philosophically disgusted at the course our country is taking, in all kinds of ways. They're making a strong protest of 'enough is enough.' But largely, it's an economic decision."

There is a catch to reaching tax nirvana. To renounce citizenship, and thus escape any future US taxes forever, a citizen must buy that freedom with a one-time exit tax of 15 percent on the fair-market value of all assets -- including real estate, securities, businesses and personal belongings -- less their basis price.

Duggan said that dozens of tax-haven nations and island regimes around the world eagerly welcome disenchanted rich Americans with quick citizenship, business deals and protections from the US Justice Department and the IRS. Among the popular spots: Australia, Norway, Singapore, Cayman Islands, Costa Rica, Guernsey and Antigua.

[SeekAndFind]

[11Bush]

Wow, a whole .000006% of the population bails out. At that rates we only have a couple of hundred years before everyone is gone.

By the way, better off without them in the coming struggles.

[HangnJudge]

I have a Dr. friend who is building a house in Belize and fully intends to Bug Out with family, permanently. He is convinced the Republic is irrevocably broken

[Clock King]

Yeah, i ain’t buying the scare tactics either.

[freedumb2003]

>>Wow, a whole .000006% of the population bails out. At that rates we only have a couple of hundred years before everyone is gone.

By the way, better off without them in the coming struggles.<<

The point is wealth can and will travel if pushed away. I moved out of California for the same reason: the administration made it crystal clear that my hard work is something to be punished, not rewarded. I ain’t rich by any means but am pretty comfortable and in the upper quintile of income (and thus a target). I won’t stay where I am not wanted (just my money is wanted). You can imagine how much tax revenue I took with me (5 figures). Add to that I have no kids and only drive < 1,500 miles a year (I travel for work) and California sent away quite an income stream in its arrogance.

The attack on the “rich” today is the same at the Federal level. How long would YOU put up with being told you are greedy and evil and will be a target just because you succeeded in what WAS the American Dream? Eventually you would flip everyone off, take your ball and go somewhere where they are happy to see you. And that place is NOT obozo’s America.

[Made In The USA]

Wonder how much that .000006% contributed to the economy, property tax, charitable contributions, etc. Agree the volume is comically small and our great country will obviously survive... but there’s an impact of people Going Galt.

[FoxInSocks]

I figure it’s actually about 3/1000 of 1 percent, and they’re from the productive half of society. When the wealthy take their football, it will be harder to play the game here.

[Theoria]

And where does Galt go? From what other country has the same liberties and freedoms that we have? Guns, speech, religion,, etc. Name it.

If ya don't wanna stand here and fight. Then please do the best Sir Robin impression and run away.

[griswold3]

I am convinced that the Republic is irrevocably BROKE. The interest payments on the debt alone will destroy the middle class standard of living. It’s simple math.
Prepare accordingly.

[Little Ray]

So, how much money did they take with them?

[ebersole]

All of it:) Another point is how much are these uber wealthy individuals(and other wealthy Americans)no longer investing in American companies? How much money has been lost due to foreign companies and investors pulling their money out or no longer investing in the US because of the current anti-business and class warfare brought on by the current communists posing as US politicians?

[zencycler]

Wow, a whole .000006% of the population bails out. At that rates we only have a couple of hundred years before everyone is gone.

Some of the rich have other alternatives. If they have decision-making power of wages and/or prices, they can (and do) effectively shift their tax burden onto average folks in the form of lower (or foregone planned increases to) wages, or higher (or foregone planned decreases to) prices. It's those without such control (like socialite and Dem supporter Denise Rich, who recently bailed out) that can then only escape these taxes by leaving.

The point is, the rich HAVE alternatives, and if they can't shift higher taxes onto us, they they will leave, and in ever increasing numbers until we become a more business-friendly country again. In the meantime, Dems can demogogue "tax the rich" all they want, but directly or indirectly, it's the average person who pays all the taxes.

[agere_contra]

So, how much money did they take with them?

Seriously: about half what they started with.

The US has built a wall around its inmates, but instead of concrete that wall is built of asset-confiscation.

[RobbyS]

The history of the federal income tax tells us that the rich can beat the system, and they do this by getting the government to shift the burden onto the populace as a whole.

[DTogo]

"Some are philosophically disgusted at the course our country is taking, in all kinds of ways. They're making a strong protest of 'enough is enough.' But largely, it's an economic decision."

Good riddance!

So much for "...we mutually pledge to each other our Lives, our Fortunes and our sacred Honor."

[RobbyS]

That is, if they just jump through all the hoops. The wealthy are clever enough to jump through some of them while their agents do run around the rest of them.

[zencycler]

Until we truly become a socialist country, the real levels of power over our economy exist in private enterprise, not in government. So my point is the rich don't need government to shift the tax burden onto us. Whatever taxes they are assessed are ultimately shifted onto us in the form of lower (or foregone increases to) wages or higher (or foregone decreases to) prices.

Tax cuts take longer to "trickle down" since corporations can enjoy the increased after-tax profits until competitive pressures force them to consider wage increases or price improvements. But tax increases are guaranteed to trickle down very quickly, since ultimately, people are in business to make after-tax profits.

[bjorn14]

Yeah, wait til it gets to the 1% who pay the bills.

[Little Ray]

So we have lost a huge sum in wealth and talent; the situation is so bad that these folks are willing to take a major hit to their net worth just to get away.

In a rational nation, that would be called a “clue.”